Denver Real Estate Market
Outpaced Modest National Growth
The Denver real estate market continued to set records this spring, advancing well ahead of most national sectors.
Existing-home sales prices in the Denver real estate market reached an all-time high this spring. At the end of April, the median sales price was $280,640, 71.8 percent higher than the national figure. According to the S&P/Case-Shiller Homes Price Index, the Mile High City experienced its 15th year-over-year price increase of nine percent and its 27th straight month of positive year-over-year growth.
A factor dampening Denver’s real estate growth potential was the lack of current inventory. While the number of available homes nationwide has accelerated, Denver has too few properties on the market. There were only 5,572 homes for sale at the end of April, down from 8,716 the year before — a 64 percent decline.
Case-Shiller Home Price Index Trends for Denver
At 9.1 percent, Denver’s year-over-year gain for March was a little lower than that of Case-Shiller Homes Price Index average of 12.4 percent. According to the index, the Denver real estate market was one of few to hit post-recession high sales prices this spring. Both Denver and Dallas had lower pre-recession peaks than most cities. What that means is Denver’s growth was shaped by trends independent of the real estate bubble.
National Real Estate Trends
The National Association of Realtors (NAR) recently announced the real estate market improved slightly in April. Existing-home sales rose 1.3 percent from March, from 4.59 to 4.65 million homes. That figure is 6.8 percent below the 4.99 million sales made in April, 2013. Sales were strongest in the South and West; the Midwest saw a slight decline, and the Northeast held steady.
Overall, the market saw an increase in inventory this spring. More houses on the market have helped to moderate national prices, which increased 5.2 percent since last April, to a median existing-home price of $201,700. Analysts predict the percentages will rise as the season advances and more properties will be available to buyers.
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